What can borrowers potentially do if a significant violation occurs?

If a significant violation occurs under the Truth in Lending Act (Regulation Z), borrowers have the right to take specific actions to address the violation. One of their primary rights is to potentially revoke the loan transaction, which allows them to eliminate the loan's impact and reclaim the interest that has already been paid. This right arises from the purpose of Regulation Z, which aims to ensure that borrowers are provided with clear and accurate information about their credit obligations, empowering them to make informed borrowing decisions.

When significant violations occur, these actions provide a mechanism for borrowers to rectify situations where they were misled or not given appropriate disclosures. The option of revoking the transaction and reclaiming interest is a crucial safeguard built into the regulation to protect consumers from potential predatory lending practices and ensure accountability on the part of lenders.

Other options mentioned, such as increasing the loan amount, revising loan terms at will, or negotiating lower monthly payments, do not directly relate to remedies for significant violations. Instead, they represent broader actions that may not necessarily be linked to the protections afforded under Regulation Z. This highlights the specific and powerful remedy of revocation and interest recovery when significant violations occur.